The Japanese economy contracted by 0.4% in Q3 and this is a very big disappointment: the economy was expected to return to growth of 0.5%. Year over year, this is a 1.6% contraction instead of 2.2% predicted. A second quarter of contraction means an official recession. USD/JPY jumped to 117 before losing 116 and recapturing it. Does this mean more stimulus, making it a buying opportunity, or does it mean that Abe is on his way out? Private consumption hardly grew, by 0.4%, which means that the impact of the sales tax hike from 5% to 8% is still felt. In Q2, consumption plunged by 5%. The next tax hike is officially planned for October 2015 but is widely expected to be delayed until 2017. There may be some kind of a silver lining: inventory adjustments could be responsible for some of this fall into recession: businesses cut down inventories – depleting of inventories means that they will need to be replenished in the following quarters. Also fiscal stimulus is on the cards, perhaps in the size of 3 trillion yen. This strengthens the notion that Prime Minister Shinzo Abe, now under pressure, is set to call snap elections, asking for a new mandate for his policies, especially a delay in the next tax hike. The sales tax hike in April dealt a blow to the world’s third largest economy and it couldn’t really recover. PM Abe is set to make a special announcement on Tuesday. More: USD/JPY: Almost To The Universe & Beyond: New Forecasts – Danske And here is the chart: Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Australia to suffer a recession in 2015 Guest 8 years The Japanese economy contracted by 0.4% in Q3 and this is a very big disappointment: the economy was expected to return to growth of 0.5%. Year over year, this is a 1.6% contraction instead of 2.2% predicted. A second quarter of contraction means an official recession. USD/JPY jumped to 117 before losing 116 and recapturing it. Does this mean more stimulus, making it a buying opportunity, or does it mean that Abe is on his way out? Private consumption hardly grew, by 0.4%, which means that the impact of the sales tax hike from 5% to 8% is still felt.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
